Chelsea have completed the €40 million (£35.1m) signing of Lyon player Malo Gusto.

The 19-year-old will stay on loan with Lyon for the rest of the season after the French side confirmed the Blues will pay €35m (£30.7m) plus a further €5 million (£4.4m) in bonuses for the defender.

Gusto passed his medical at the Blues training ground yesterday and signed a seven-and-a-half-year deal.

The 19-year-old came through Lyon’s academy and made his professional debut for the French club two years ago.

Gusto has been signed by Graham Potter’s side to provide competition for Reece James.

Chelsea’s statement on Sunday morning said that the youngster, who they described as an “exciting 19-year-old right-back” has signed a deal that will keep him at Stamford Bridge till 2030.

The club said the player has headed back to Lyon where he is expected to spend the remainder of the season.